Labour Minister Sparks Outrage by Claiming Employers Are Not 'Working People'

Treasury minister Emma Reynolds is facing backlash after stating that employers are not 'working people' in a recent interview. The Chief Secretary to the Treasury made the distinction while discussing Labour's tax policies on GB News, particularly the increase in burdens on landlords and savers.

When questioned about the Budget's two percentage point tax increase on landlords and savers, and presenter Camilla Tominey pointed out that these individuals are also workers, Reynolds replied, 'Well, firstly, let me say I don't think employers are working people - they are companies. And secondly, in the manifesto, we were clear that we would not increase the headline rate of income tax - which we haven't done - and we haven't increased VAT, and we haven't increased national insurance for employees.'

Tominey cited the case of Paul Bowen, a pie shop owner who had previously described the struggles his businesses faced due to rising national insurance, minimum wage, and inflation. Bowen, who employs staff, was presented as an example of an employer who is also a worker. Reynolds stated she would like to speak with Mr. Bowen but did not directly address whether employers are working people. She reiterated her distinction between employees and employers, noting that she also employs a cleaner because she works long hours.

Reynolds insisted that the tax increases were 'targeted and fair' and that the government had offered business rates relief to many small businesses. However, her comments were met with strong disapproval from Conservative politicians. Shadow defence secretary James Cartlidge posted on X that 'employing people is one of the hardest jobs there is' and suggested Labour did not understand this. Conservative frontbencher Neil Shastri-Hurst commented that Reynolds' remarks would be surprising to many small business owners.

Last week, Paul Bowen, a former participant on 'The Apprentice' who runs pie shops in Chorley, Lancashire, expressed his difficulties on ITV's 'Good Morning Britain.' He detailed how increased employer National Insurance contributions, energy costs, and a lack of business rates relief were crippling his business. Bowen stated that he was forced to take a pay cut himself and would have to increase prices, potentially alienating customers, and that his business was also facing a reduction in profit. He questioned where his 'breathing space' was, especially as he operates two shops and therefore does not qualify for certain business rate reliefs. Bowen had previously spoken about closing one shop due to past increases in employer National Insurance contributions.